Greece is among the EU countries that experienced a drop in the average daily rates (ADR) in July, recording a notable decline of 9.8%, although, over the past five years, Europe as a whole has seen a consistent increase in Airbnb prices.
An Airbnb report highlights that in countries such as Norway, Sweden, and Greece, the annual decline in ADR coincides with a consistent drop in occupancy rates which is attributed to a supply increase that far outpaces demand.
Despite strong supply, demand, and occupancy, last month was also the first in nearly two years where the ADR dropped, falling by 1.5% year-on-year (YoY). An increasing number of bookings are being made at the last minute.
Among the top 20 European countries, nine recorded decreases, with Greece showing the largest drop at 9.8%, followed by Croatia at 7.8% and Hungary at 6.8%. On the other hand, the highest increases were seen in Denmark (13.8%), Austria (6.9%), and Germany (6.4%).
Over the past five years, there has been a significant decline in the percentage of bookings made more than 60 days in advance, coupled with a notable increase in stays booked less than 14 days prior.
According to AirDNA data, available beds last month reached a new record high of 4 million in Europe, up 15% year-over-year (YoY) and 5% from June.
Despite resilient demand keeping occupancy positive, which averaged 68% across Europe last month, showing a 0.3% YoY increase, the month also marked the first time in 20 months that Europe saw a decline in the average daily rate (ADR) on a yearly basis.
